Why Buy IBM Shares? Watson
IBM (IBM) is firing on all cylinders lately and its share price reflects its staying power by closing above $200 a share this week. IBM's super computer Watson is going to work for Citigroup (C) and its why the Masters want in now.
Last week we recommended buying IBM shares in 3 Stocks to Buy at 12 Month Highs. IBM was trading just under its 12 month high and this week it made the $200 roll hitting $201.19.
Citigroup (C) is hiring Watson to do what no man can do. The AWESOM-O like computer will help analyze customer needs and process financial, economic and client data to advance and personalize digital banking.
Watson already does work for its health-care clients WellPoint Inc. and Seton Health Family by analyzing data to improve care. IBM executives say Watson’s skills -- understanding and processing natural language, consulting vast volumes of unstructured information, and accurately answering questions with humanlike cognition -- are also well suited for the finance industry.
Watson may add $2.65 billion in revenue in 2015, adding 52 cents of earnings per share, Ed Maguire, an analyst at CLSA in New York, estimated in a November research note (source: bloomberg via fa-mag.com)
MASTERY Bottom line:
Need another reason to buy IBM?
Watson is your answer.
Mastery expects IBM to continue to prosper in 2012.
Our 12 month target price for IBM is now $250.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- How and Why the Chinese Are Buying Property Outside of China | Financial Sense
- How High is High? (To Whom?) | Financial Sense
- Today’s Movers | iBankCoin.com
- Stocks Move Higher on Strong Earnings, Low Inflation Readings | Financial Sense
- Senate Democrats Push To Triple Israel's Iron-Dome Aid To $576 Million | ZeroHedge
- Europe Unleashes Sanctions On 15 Individuals And 18 Entities (But No Russian Companies) | ZeroHedge
- Whi(t)ney Tilson Does It Again | ZeroHedge
The most relevant financial news and articles from the Internets
- The 10 Most Important Things In The World Right Now | Business Insider
- This Is Where The Tech Giants Are Spending Their Money In DC | Business Insider
- Here's How Richard Branson Celebrated His Birthday On Necker Island | Business Insider
- Mark Zuckerberg Got A Little Snippy When Asked Why A ‘Payments... | Business Insider
- BOEHNER TO OBAMA: Tell Us Where You Stand On The Key Issue In The Border Crisis | Business Insider
- It's Turned Into An Absolutely Awful Day For Some Short-Sellers (Z, TRLA, SODA... | Business Insider
- How Malaysia Airlines Can Be Saved From Financial And Reputational Ruin | Business Insider